Direct Indexing with Rich Compson
What’s the difference between mutual funds and exchange traded funds? This week on the rich & REGULAR podcast, Kiersten and Julien Saunders pose this question—and more—to registered investment advisor Rich Compson.
Compson is the head of retail managed accounts at Fidelity Investments. He oversees management of its $600 billion suite of retail wealth and digital managed account offerings. He’s also responsible for developing services to help customers reach their financial goals.
While historically you had to go to an advisor to get access to these products and services, Compson discusses how investing has become more accessible online. Fractional shares have also lowered the minimum investment required.
He also explains how direct indexing works: Instead of a fund, you can own a portion of all the individual stocks in an index, like the S&P 500. This enables you to have more personal preferences when investing, focusing on companies that reflect certain social or environmental values, for example. Compson also shares how to start simple with investing, how portfolios work and ways you can offset tax gains and losses.
“Time is your friend with investing—the longer you can invest over time and the more you can learn, the better you’ll get at it and the more you’ll save,” he says.
Learn more at richandregular.com, purchase Cashing Out: Win the Wealth Game by Walking Away by Kiersten and Julien Saunders and follow on Instagram @richandregular.
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Julien and Kiersten Saunders, Money Editors for SUCCESS magazine, are the couple behind the award-winning blog and forthcoming book, rich & REGULAR. They are producers and hosts of the original series, Money on the Table, which blends their passion for food with thoughtful conversations about money
Julien and Kiersten Saunders, Money Editors for SUCCESS magazine, are the couple behind the award-winning blog and forthcoming book, rich & REGULAR. They are producers and hosts of the original series, Money on the Table, which blends their passion for food with thoughtful conversations about money